Saudi Arabia has rejected what it termed “military blackmail” following reports of a $1 billion financial transfer to Yemen’s Houthi movement under an Iran-brokered arrangement aimed at securing a ceasefire and halting attacks on the kingdom, according to diplomatic sources cited by Israeli media.
Ceasefire Talks and the Reported $1 Billion Transfer in Tehran
The reported negotiations took place during a visit to Tehran by Saudi Defense Minister Prince Khalid bin Salman. Citing Gulf diplomatic sources, Israel Hayom reported that the Saudi defense minister arrived aboard a Hercules military transport aircraft that allegedly carried the $1 billion in cash designated for the Houthi group. A Saudi official contacted by Israel Hayom did not confirm that any funds had been transferred.
The high-level talks in the Iranian capital brought together senior figures from several regional states. Iran was represented by President Masoud Pezeshkian, Supreme National Security Council Secretary General Mohsen Rezaei, and senior officials from the Islamic Revolutionary Guard Corps (IRGC). The meeting also included Turkish intelligence chief Ibrahim Kalin and Pakistan’s army chief, Field Marshal Asim Munir, alongside representatives of the Mecca Joint Defense Alliance. According to Israel Hayom, the initiative for the multi-party summit took shape during the Pakistani army chief’s visit to Tehran the previous week.
The Houthis have repeatedly targeted Saudi airports and oil facilities, inflicting heavy economic damage on the kingdom. Simultaneously, Iranian attacks on commercial tankers in the Strait of Hormuz have disrupted vital oil exports from the Gulf, compounding regional instability.
The Mecca Joint Defense Alliance and Regional Strategy
The Saudi Foreign Ministry addressed the defense minister’s visit in an official statement, framing the trip through multilateral diplomatic channels. “The visit to Tehran by Prince Khalid bin Salman, the defense minister, and representatives of the member states of the Mecca Joint Defense Alliance comes as part of the alliance’s ongoing efforts to de-escalate tensions between the parties to the current crisis, encourage dialogue and diplomatic solutions, and support the mediation efforts undertaken by the State of Qatar and the Islamic Republic of Pakistan,” the ministry stated.
According to Israel Hayom, the meeting marked the first official encounter between representatives of the Mecca alliance and the Iranian leadership. However, the publication also noted diplomatic friction within the pact, reporting that Pakistan and Turkey have sent only military advisers rather than active support forces, despite the alliance’s mutual defense provisions.
For Tehran, the summit represents a significant diplomatic opening. Iran has sought to position itself as a regional mediator while promoting an indigenous security framework led by regional powers, explicitly aiming to counter potential United States or Israeli military intervention.
Unresolved Demands Over Past Understandings
The discussions in Tehran are tied to the implementation of understandings reached three years ago between Riyadh and the Houthis. Under those previous terms, Saudi Arabia was scheduled to provide direct financial assistance intended to cover public-sector salaries in Houthi-controlled regions of Yemen and fund civilian infrastructure reconstruction. In exchange, the Houthi movement was expected to maintain a ceasefire and halt strikes on Saudi territory. In recent months, the Houthis have defended their continued assaults by asserting that Riyadh failed to honor those financial commitments.
Despite the ongoing back-channel talks, official Saudi policy remains unchanged. According to Israel Hayom, Riyadh categorically refuses to agree to a new ceasefire under military blackmail or provide funding before the Houthis make territorial concessions.
